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After The Layoffs - What Next?
After The Layoffs - What Next?
next?
Mismanaged layoffs? Crisis Management?
.
Case in Brief
Analysis
Conclusion
Recommendation
Problem / Issue
The main problem/issue within this case revolves around the new CEO of Delarks,
Focused on strictly downsizing the company by laying off a significant number of employees (20%
for a total of 3,000 people)
Seniority was not taken into considerations when laying off the employees
Very quick layoffs because he thought that this was the least intrusive and the most gentlest way.
Denton was under a lot of heat from the surviving employees after the downsizing and even from
the new employees brought into the company.
Monies sanctioned for refurbishment & renovation. Layoffs to offset this cost?
Laying off 3,000 personnel with no warning. St Paulss townhall Mae Collier
survivors were not upset about all the layoffs that occurred but mostly about the ones where good employees
who made a difference
Restaurants were rarely busy; closing them eliminated about 400 jobs
Erratic behaviour??
Slvia ODonnell - closure of the Madison. A letter informing closing down and Laying off the staff.
HR head - Thomas Wazinky in the know but fear of termination.
Layoffs because employees are older?
HoDs leaving for rival company as sudden fear and disappearance of security.
Analysis
Presenteeism?
Conclusion
Short term :
Fulfills objective as the CEO- financial stability, despite dissatisfaction of
Dentons downsizing procedures,
Seemed that Delarks would continue to bring in a positive net cash flow
for the future as well.
Working at the company no longer feels gratifying to surviving
employees.
Survivors would quit soon.
Long-term :
May cause the closure - perception Management has erratic behavior.
Can not handle organizational-wide change
Recommendation
Handle townhall meetings better learn issues that is plaguing the employees
Put the interest of employees before the interest of the wall street
Turn around using employee centric mode. May take longer but will be steadier.